Item 5: Fees and Compensation
The fees applicable to each of the Funds are set forth in detail in the corresponding
documentation governing the relationship with that Client (“Offering Documents”). A brief
summary of such fees is provided below.
Management Fee
Depending on investment products and strategies, accredited clients will pay an Homaer
International an investment management fee (“Management Fee”) per annuum.
The fee will be up to 2.00% of assets under management along with a range of up to 25.00%
performance fee based on capital appreciation. If the client's portfolio rises in value, the client
will pay given performance rate on that increase in value (sometimes with a hurdle rate), but
if the portfolio drops in value, the client will not incur a new performance fee until the portfolio
reaches the last highest value, adjusted for withdrawals and deposits, which is generally
known as a “high water mark.” The high-water mark will be the highest value of the client’s
account on the last day of any previous quarter, after accounting for the client’s deposits or
withdrawals for each billing period. These fees are generally negotiable and the final fee
schedule is attached as Exhibit II of the Investment Advisory Contract. This service may be
canceled with 30 days’ notice. Clients must pay the prorated performance-based fees for the
billing period in which they terminate the Investment Advisory Contract up to and including
the day of termination.
The Investment Manager, in its sole discretion, may waive or modify the Management Fee for
any Investor.
Other Types of Fees or Expenses
Homaer International is authorized to incur and pay in the name and on behalf of the Funds
all expenses which they deem necessary or advisable.
The Funds bear their own expenses including legal, accounting, third-party administration,
auditing expenses, organizational expenses, directors’ fees and expenses, certain research-
related expenses, fees paid to Portfolio Funds (e.g., management and performance fees), and
other investment-related expenses including the pro rata share of the expenses of any
investment entities or accounts in which the Funds may invest, and other reasonable expenses
related to the purchase, sale or transmittal of Fund assets. Certain research-related expenses
are allocated between the Funds and the Firm based on asset under management with respect
to the Funds and the Clients unless the expense is solely for the purpose of the Funds or the
Clients. The Firm will pay the share allocable to non-Fund Clients. The feeder fund also bears
its pro rata share of the expenses (other than the management fee and incentive allocation)
of the master fund.
The Firm is responsible for and shall pay, or cause to be paid, all of their own ordinary
administrative and overhead expenses, including, without limitation, all costs and expenses
related to rent, furniture, fixtures, equipment, office supplies, clerical expenses and all
salaries, bonuses and benefits paid to, or on behalf of, personnel of the Firm.
In general, each Investor will bear its proportionate share of the Fund expenses on a pro rata
basis with respect to the size of such Investor’s capital account(s) or with respect to the
relative net asset value of the shares held by such Investor, as applicable.
To the extent that expenses to be borne by the Funds are paid by the Firm or its affiliates, the
Funds will reimburse the Firm or its affiliates for such expenses. We may waive any such
reimbursement with respect to any Fund expenses. Any waiver by us for reimbursement of
any Fund expenses shall not serve as a waiver of reimbursement for any future Fund expenses
to be paid by us or our affiliates.
Neither the Firm nor its employees accept compensation, including sales charges or service
fees, from any person for the sale of securities or other investment products.
Payment of Performance-Based Portfolio Management Fees
Performance-based portfolio management fees may be invoiced and billed directly to the
client on a monthly basis, fees are paid in arrears.
Client Responsibility for Third Party Fees
Clients are responsible for the payment of all third-party fees (i.e. custodian fees, brokerage
fees, mutual fund fees, transaction fees, etc.). Those fees are separate and distinct from the
fees and expenses charged by Homaer International. Please see Item 12 of this brochure
regarding broker-dealer/custodian.
Prepayment of Fees
Homaer International collects its fees in arrears. It does not collect fees in advance. Fees are
based on client’s asset values being advised.